THE FINANCIAL EXCLUSION IN THE DEVELOPMENT OF DIGITAL FINANCE — A STUDY BASED ON SURVEY DATA IN THE JINGJINJI RURAL AREA

Abstract

Based on survey data, we analyze the level of financial exclusion during the development of digital finance in the rural area of three Chinese provinces of Beijing, Tianjin and Hebei (Jingjinji). We use a censored probit model to examine whether there is financial exclusion and the degree of financial exclusion for the rural residents. The empirical results show that the significant factors influencing the financial exclusion in digital finance include the personal characteristics of the rural residents, the understanding of digital finance, digital financial infrastructure, the development of digital finance, and the social environment. Therefore, we think the precise orientation and distinction for the excluded group in the rural area, according to age, education, income, and other influencing factors could be helpful for making policies to eliminate financial exclusion and increase the inclusiveness of the financial industry.